The Newcastle Knights Board met on Monday and advised Rick Stone's position as head coach was untenable.
Danny Buderus will step in as interim coach until season's end while the club goes through a formal process to appoint the 2016 coach.
"We thank Rick for his efforts and loyalty over a long period of time and while these decisions are never easy, it was made in the best interests of the club," CEO Matt Gidley said.
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